Online food delivery platform Swiggy has now started charging all users a “platform fee” of Rs 2 per food order in order to control its costs. The additional charge, which will remain the same irrespective of the order value, is initially being rolled out for customers in Bengaluru and Hyderabad.
The charges have not become effective in cities like Delhi and Mumbai yet, as per a Moneycontrol report. The platform fee, which is applicable only on food delivery, is currently not applicable to Instamart deliveries.
A Swiggy spokesperson said, “The platform fee is a nominal flat fee charged on food orders. This fee helps us operate and improve our platform and enhance app features to deliver a seamless app experience.”
The primary reason behind the move is the slowdown in the delivery business. “The company was no exception,” said Swiggy’s chief executive and co-founder Sriharsha Majety in an email to employees which mentioned the company slashing 380 jobs.
“The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally)….While our cash reserves allow us to be fundamentally well positioned to weather harsh circumstances, we cannot make this a crutch and must continue identifying efficiencies to secure our long-term,” the email read.
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